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    Insourcing Nightmares

    By Christian Schraga
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    Perhaps you’ve fallen into the same trap I have.  You have an idea for a new digital product, and you think you can build it internally.  Maybe you have a well-known offline brand, but you don’t yet have a successful mobile app. And perhaps you have a guy in IT who is a talented Java developer. Why not let him take a crack at it (insourcing)?

    You may want to read Which Is Better for Software Development? Outsourcing or In-House?

    This is a mighty tempting option, particularly for large and medium sized companies. Why? There are two main reasons:

    1. Cost:  If we can work with internal resources who are already being paid, then the product is basically free, right? So isn’t that a better option than paying an outside firm?
    1. Managing Expectations: Executives hate to admit this, but managing expectations is a key ingredient in corporate survival. It is potentially suicidal for a CTO (or any other senior exec) to tell the CEO that there is a potential goldmine in the digital marketplace because then the CEO will expect the gold! And if the product fails, the CTO could lose their job or even their career. Consequently, senior executives aren’t going to want to stick their necks out unless they have an assurance of success.

    Because of the aforementioned reasons, established companies are often reticent to hire outside development firms. The strategy that they tend to employ is, “Let’s try to build something internally, and see how it does.”  Then they either: a) develop a basic app, nobody downloads it, and then the company forgets about it, or b) the internal team never actually launches the app, and then the company forgets about it.

    Does any of this sound familiar?  I’ve been in companies that have made this mistake more than once. And I’ve seen it happen in other big companies too many times to count. So perhaps it’s time to try something new? Or in the words of motivational speaker Les Brown, “You must be willing to do the things today others won’t do, in order to have the things tomorrow others won’t have.”

    If you’re willing to at least entertain the idea of trying a new approach in bringing a new digital product into the marketplace, please contact us.  Not only do we have a software engineering team that builds a top-notch product, but we also know how to work with you to ensure your initiatives will be supported internally. As our existing clients can tell you, we make our clients careers soar.

    Continuing with the status quo may seem like the safe choice today, but where will it get you five or even three years from now? Eventually, someone will create a digital product in your marketplace that will be wildly successful. Why can’t that someone be you?

    As Pliny the Elder famously said in 79 AD, “fortune favors the bold.”


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    SVP of Product

    About the author...

    Christian Schraga has more than 20 years experience working in various functions within the software industry. He has been the SVP of Product of CodeStringers since January of 2020. Prior to that he was a customer of CodeStringers, having founded Ella Learning, which we are now proud to say is a CodeStringers product. Additionally, Christian spent 10 years in the music industry as the VP of Digital for Columbia Records where he oversaw the development of several successful mobile apps, including the Webby Award winning Bob Dylan Bootlegs app and the blockbuster AC/DC Rocks app. Christian also spent 4 years in data science, working on several predictive and AI applications for the auto, music, and retail industries. He also has 4 years of finance experience having worked for the prestigious GE Corporate Finance Staff. Christian has an MBA from the Wharton School of Business and a BA from UCLA. In his spare time, Christian is an avid language learning enthusiast, who has a reasonable amount of fluency in 6 languages. He is also a fitness fanatic-- having run 10 marathons.

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